USD/TRY closing in to 6.00 as US-Turkey tensions escalate


  • USD/TRY climbs further and surpasses the 5.9300.
  • US-Turkey effervescence on S-400 keeps swelling.
  • Turkey Current Account deficit came in at $1.33 billion in April.

The Turkish Lira is extending its move lower so far this week and is lifting USD/TRY to fresh tops beyond the 5.9300 handle.

USD/TRY now targets 6.00 on US sanctions fears

The pair has been gathering renewed steam following Tuesday’s lows in the 5.7500 neighbourhood, clinching fresh 2-week peaks beyond 5.9300 the figure earlier today and always on the back of rising US-Turkey tensions.

In fact, frictions between the US and Turkey remain well on the rise after Erdogan’s government could be assessing counter measures in case the White House imposes sanctions against the country following the purchase of the Russian S-400 missile defence system.

In the Turkish calendar, the Current Account deficit widened to $1.33 billion during April, while June’s End Year CPI Forecast is coming up next. In the US docket, Retail Sales will be in the limelight as well as the U-Mich sentiment gauge followed by Industrial and Manufacturing Production figures.

What to look for around TRY

The Turkish Lira keeps depreciating so far this week, opening at the same time a potential test of the psychological 6.00 handle if the selling impulse accelerates. As usual, trade effervescence should remain as key driver in the EM FX space, while frictions between the AKP and its main opposition party in the run up to the municipal elections in Istanbul also emerging as another source for Lira volatility. In the very near term, investors are closely following the developments from the US-Turkey effervescence and probable US sanctions against the country over the purchase of the S-400 missile defence system. On another direction, the independence and credibility of the CBRT should remain under the microscope in response to the omnipresent conflict between the government and the bank’s authorities.

USD/TRY key levels

At the moment the pair is up 0.48% at 5.8957 and faces the immediate hurdle at 5.9326 (high Jun.14) followed by 5.9893 (23.6% Fibo retracement of the 2019 rally) and finally 6.1516 (high May 23). On the downside, a breach of 5.8069 (10-day SMA) would open the door to 5.6560 (low Jun.5) and then 5.6232 (200-day SMA).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD accelerates decline and nears 1.1200

The US Nonfarm Payroll report’s effects are long gone. The greenback gets attention as stocks eased sharply from intraday highs, still holding in the green, yet undermined by record coronavirus cases in the US.

EUR/USD News

AUD/USD hovering around 0.6920 after a dull day

AUD/USD pair seesawed between gains and losses, settling for a second consecutive day at around 0.6920. Australian PMIs and Chinese services output coming up next.

AUD/USD News

Gold: Bears seeking justice below key support

XAU/USD has been a mixed bag this week and for the start of the month, trapping bears ina recent stop hunt from the $1,757.66 level where it met a high of $1,779.69 on the last session before the US long weekend. 

Gold News

Crypto collapse with Bitcoin falling below $9,000 and Ethereum getting close to $220

Most cryptocurrencies are experiencing a significant sell-off after Bitcoin fell below $9,000. BNB/USD has suffered the most with a 4% drop towards $15 and needs to hold $14.8 support. 

Read more

Oil: $40 per barrel has been broken again but there is a lack of conviction at these current levels

WTI has continued to move higher on Thursday but the price action seems pretty lacklustre despite volatility elsewhere. There have been some decent news stories in the past few sessions as it was confirmed OPEC output reached a two-decade low after over compliance from Saudi Arabia. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures